Best Buy's stock rises after profit, revenue and same-store sales fall less than expected

[Omaha Steve]

Source: Market Watch

By Tomi Kilgore

Shares of Best Buy Co. Inc. BBY, -4.77% rallied 1.7% in premarket trading Thursday, after the consumer electronics retailer reported fiscal first-quarter profit, revenue and same-store sales that fell less than expected. Net income for the quarter to May 2 fell to $159 million, or 61 cents a share, from $265 million, or 98 cents a share, in the year ago period. Excluding non-recurring items, adjusted earnings per share fell to 67 cents from $1.02, but was above the FactSet consensus of 49 cents. Revenue fell 6.3% to $8.56 billion, beating the FactSet consensus of $8.24 billion. Overall same-store sales declined 5.3%, but was better than the FactSet consensus for an 8.6% drop. Domestic same-store sales fell 5.7% to beat expectations of an 11.1% drop, while international same-store sales grew 0.2% to beat expectations of an 11.9% decline. ""In the middle of Q1, we shifted all our stores to a curbside-only operating model and were able to retain approximately 81% of last year's sales during the last six weeks of the quarter, even though not a single customer set foot in our stores," said Chief Executive Corie Barry. On May 4, the company started opening stores, following strict social distancing measures and with the use of protective equipment. The company said about 700 stores, or 70%, are now open. The stock has declined 9.7% over the past three months through Wednesday, while the S&P 500 SPX, -0.55% has lost 11.0%.



Read more: https://www.marketwatch.com/story/best-buys-stock-rises-after-profit-revenue-and-same-store-sales-fall-less-than-expected-2020-05-21

[beastie boy]

1. This captures the zeitgeist of the Trump presidency perfectly.

Sucking less than expected is now a virtue that is being rewarded by the stock market.

[ArizonaLib]

4. I wonder if a single investor bought up enough shares to inflate the price.

B.S. news stories about the market prices also capture the 'zitgeist' of this presidency.

[Freethinker65]

2. Good for Best Buy. Hope they pass some $ to their hourly employees

[SWBTATTReg]

3. I personally hope that they go bust. Best Buy is the one retailer that wouldn't rebate me a ...

late fee when my credit union messed up on sending out some electronic payments (to four total payees, one of whom was Best Buy).

Best Buy was the only retailer that refused to rebate my late fee (my CU did pay me back for all of the late fees plus wrote a letter to each of the four parties stating that the error was theirs alone, so don't harm/take negative action on me).

The other 3 did, no problem.

This is been some 15+ or more years ago, and I'll never trust them or do business w/ them. Because if something does happen, and they have a legal way out of it, they'll walk away from you, and won't look back. Remember that. The other 3 did cheerfully and willingly, and of course my CU was wonderful but I was kind of irritated that they messed up (they messed twice during my sojourn w/ them, but how can you complain, I've been w/ them for over 41 years).

[ArizonaLib]

5. Best Buy has long been one of the worst credit accounts to have

They won't correct anything, and are very aggressive as it pertains to credit reporting.

[SWBTATTReg]

7. You had asked earlier, about if a single investor brought them out...my understanding was ...

yes. Or it was a small group, but I don't think that's true today, I glanced briefly over the top % ownership here a few seconds ago, and one of those listed from my quick glance is Blackrock, a holding company w/ an iffy background, and Geode (another iffy background)...amazing just from one time quickly looking, that I (by prior news articles I've read) that two of the iffy companies I've read over the years are on their list of significant % share holders.

[ArizonaLib]

8. Thanks - I wasn't following it specifically

I didn't realize I was replying to the same DU'er. I hope you and your loved ones are doing well.

[SWBTATTReg]

9. You too. Thanks. NT

[kysrsoze]

6. They were smart to start curbside pickups immediately and I'd rather buy from them than...

Amazon and Walmart. I wish we had more options for electronics and related items, but aside from a few smaller stores and awful places like Fry's, that's pretty much it. I hope they continue to do well.

And yes, I do seek out smaller places for audio equipment, music, etc. But they don't work for everything.

[deurbano]

14. Our TV crapped out and we were able to get a nice one with curbside pick-up a few hours later.

We are watching a lot more big screen TV (like Amazon Prime, Netflix, Hulu, Britbox, Acorn, etc.) as a family at night than we used to, so we wanted to get a new one for the living room, asap. We are also projecting on a screen on the back patio where we have a fire table, and we watched Pres. Obama's commencement address out there with our high school senior. I want to start watching the classics again, like Casablanca, out there, too...hopefully with our next-door-neighbors watching our their window!

[csziggy]

18. Best Buy has also been very aggressive about promoting deals for pickup

Everything from TVs to streaming devices to computer gear.

I had to get a WiFi adapter when I moved my computer out of my library to a location where my network cable wouldn't reach. I almost ordered from NewEgg.com, my normal computer parts supplier, but I could get the same thing from Best Buy for about the same price, days earlier than it could have been shipped from NewEgg.com.

I wouldn't buy the components for my next computer from Best Buy, but I will consider them for items needed immediately.

[Initech]

10. I used to go to Best Buy a couple times a month to get new music / movie releases.

I can't remember the last time I actually went into a store to browse. Maybe when Endgame was on Blu-Ray but that might have been it.

[LogicFirst]

11. Don't order from them.

I placed an order on May 6 knowing that my item would arrive on May 20. It is now May 21and my item is yet to be delivered (UPS). The item was delivered to the UPS warehouse (Goodyear) on May 18. Said warehouse is a 30 minute drive from my house. It baffles me that it takes more than a day for UPS to drive 26 miles. Best Buy made a bad choice in contracting with UPS.

[Cryptoad]

12. Da Market has smell abt it,,,,,,,,,,,,,,

it smells like,,,,,,,,,,,Denmark.

[BigDemVoter]

13. This company SUCKS.

They don't honor their warantees and lie through their teeth. I have had ONE huge & ugly ordeal with them and will never buy one fucking them from them again.

This company always ranks as one of the worst in the country when it comes to customer service and customer complaints.

[Xolodno]

15. That won't last.

I'm thinking some short sighted stimulus check purchases has something to do with this. And thus far, its a one time check.

[Steelrolled]

16. Any good economic news is good news to me

Especially retail sales. It might be that more time home, and more people home, means need for more electronics.

I have moved back, some, to brick-and-mortar from Amazon over the last couple years. The prices are that much different and I like seeing thins first-hand better. I will go into a Best Buy for some specialty items, but prefer other stores for most stuff.

[JI7]

17. I wonder if it was becsuse of quarantine

maybe people bought things to work from home and for entertainment